How American Sugar Buys Protection Essay Example for Free

How American Sugar Buys Protection Essay 1. The US General Accounting Office (2002) estimates that the sugar program cost domestic sweetener users about $1. 5 billion in 1996 and about $1. 9 billion in 1998. Can you validate this statement by using Probit and Tobit analysis. 2. What diagnostics are generally (multicollinearity and normality? ) run on Tobit and Probit? Do the diagnostics method differ for binomial and multinomial (say trinomial) probit? 3. â€Å"Sugar takes into account the potential influence ( power) of a party in allocating its contributions†- Explain the statement. Also give examples to prove your explanation. 4. There exists a relationship between campaign contributions and the state a Senator represents—Explain this statement and use Probit and Tobit analysis to prove your answer. Reference: US General Accounting Office (2002). Sugar Program: Supporting Sugar Prices Has Increased Users’ Costs While Benefiting Producers, GAO/RCED-00-126. http://faculty. washington. edu/belas/543/GAOSugar. pdf. http://www.bbc.co.uk/pressoffice/pressreleases/stories/2005/12_december/08/todd_making.shtml